Four independent situations are described below. Each involves future deductible

Question

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences ($ in thousands) Situation Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year t $129 $303 $305 $392 31 31 26 26 52 26 20 8.4 Deferred tax asset Deferred tax liability 4.2 4.2 4.2 The enacted tax rate is 40%. Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (.e, 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "O" wherever applicable.) Situation a. Income tax payable currenty b. Deferred tax asset-balance c. Deferred tax asset change d. Deferred tax liability-balance. e. Deferred tax liability-change f. Income tax expense

Explanation / Answer

Please give rating, if Solution is as per your expectation Statement Showing Tax Expense, Deferred Tax Asset and Liability Created Situation 1 2 3 4 Taxable Income (a) $129.00 $303.00 $305.00 $392.00 Future Deductible Amount (b) $26.00 $31.00 $31.00 Future Taxable Amount (c) $26.00 $26.00 $52.00 Income tax Payable (d= a* @40%) $51.60 $121.20 $122.00 $156.80 Deferred Tax Asset to be created (e=b*40%) $10.40 $12.40 $12.40 Deferred Tax Liability to be created (f=c*40%) $10.40 $10.40 $20.80 Deferred Tax Asset- Beginning Balance (g) $4.20 $20.00 $8.40 Deferred Tax Liability Beginning Balance (h) $4.20 $4.20 Deferred Tax Asset Change (i=e-g) $6.20 -$7.60 $4.00 Deferred tax Liability Change (j=f-h) $6.20 $6.20 $20.80 Tax Expense (d+i+j) $45.40 $127.40 $135.80 $173.60

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.